Pantheon Properties

Jason Turcotte - Real Estate Weekly - Energy Special

Most start a new year with resolutions of staying fit, eating right or kicking an unhealthy habit.
For Ken Cohen, CEO of Pantheon Properties, his number one priority in 2009 is energy conservation—and that goal of efficiency is quickly paying dividends for the developer’s tenants.

“Energy efficiency is not sexy, but there’s a real bang for your buck,” said Cohen, referring to the firm’s latest green initiative.
Pantheon’s new program emphasizes eco-friendliness through the mass retrofitting of their commercial portfolio, which encompasses industrial, office, and mixed-use properties.

Harnessing the energy-saving potential of retrofits since 2005, they’ve embarked on their first ground-up LEED-certified property 1 Coach Way, in Jacksonville, Fla. Last year and now Pantheon is scattering the white roof concept throughout their Southern assets. And that’s pulling in savings for tenants.

According to Cohen, through a reduction in reliance on air conditioning, tenants are saving close to 30% in energy costs, through payback periods and ROIs. But Cohen said such measures are also about corporate civic duty.

Results of the Global Rural Urban Mapping Project, orchestrated through Columbia University’s Earth Institute, indicate that 3% of the planet surface is covered with buildings. This means that both green and white roofs can have a measurable impact on combating global warming and climate change.

“Demonstrating this degree of altruism and responsibility during a global economic crisis – now that defines ‘bucking the trend,’” said Zack Hitchcock, Vice President of Pantheon.

And Pantheon will continue its program in the Northeast.
At its recently acquired 1500 Rahway Ave., a 325,000 SF Woodbridge, NJ property, Pantheon will install a 12-foot diameter ceiling fan to reduce energy costs. The firm projects close to a 40% energy cost reduction and, should the strategy meet expectations, Pantheon plans to implement the fans portfolio wide.

“We’re looking for ways to differentiate ourselves and do things that really demonstrate our attitude as a landlord,” Cohen said.
And Pantheon doesn’t plan to stop there. The company is also exploring ways to invest in renewable energy through solar panels, though Cohen admits this is uncharted territory for the company, with logistical challenges and legal expenses. “We spent a lot of time and energy looking into it and the economics and practicality of solar is really difficult to accommodate,” he said.

But Cohen remains committed to getting the firm’s first solar project off the ground.
“We are a future-oriented enterprise, and it’s tough enough out there for our tenants,” said Cohen.
“As Portfolio manager our concern revolves around the increasingly challenging economy and its effect on our affiliates. As developers in a degrading environment, we need to consider the bigger picture — the well-being of the land we hope to develop.”

Cohen said most companies are grappling with how pro-green they can be in such challenging economic times. But he doesn’t see it as a choice. In the short-term energy efficiency breeds content tenants and that, in turn, provides more landlord leverage when negotiating lease renewals. He hopes that going green will become so mainstream that tenants will demand such initiatives when seeking space.

But for now, Pantheon remains a pioneer.